Exhibit 99.1
Brigham Exploration Reports Second Quarter 2006 Results and Provides Third
Quarter 2006 Forecasts
AUSTIN, Texas, Aug. 7 /PRNewswire-FirstCall/ -- Brigham Exploration Company (Nasdaq: BEXP) today announced its financial results for the second quarter and six months ended June 30, 2006.
Highlights from our performance from the second quarter of 2006 include:
| * | 24% growth in second quarter production to 36.5 MMcfe per day over that in the second quarter 2005; |
| * | 42% growth in second quarter revenue to $26.1 million over that in the second quarter 2005; |
| * | 14% growth in second quarter operating income to $9.1 million over that in the second quarter 2005; and |
| * | Net cash provided by operating activities for the second quarter funded 75% of our oil and gas capital expenditures. |
SECOND QUARTER 2006 RESULTS
Our net daily production volumes for the second quarter 2006 were 36.5 MMcfe/d, up 24% when compared to last year’s second quarter volumes. Revenues from the sale of oil and natural gas for the second quarter 2006 were up 42% to $26.1 million when compared to that in the same period last year. Second quarter 2006 revenues increased by $4.3 million due to increased production volumes and $3.4 million due to increased realized prices.
Our average realized price for natural gas during the second quarter 2006 was $7.07 per Mcf and included a $0.51 per Mcf gain associated with the settlement of our natural gas derivative contracts. This compares to an average realized price in last year’s second quarter of $6.62, which included an $0.11 per Mcf loss due to the settlement of our natural gas derivative contracts. During the second quarter 2006, our average realized price for oil was $68.88 per barrel, which was not impacted by the settlement of our oil derivative contracts during the quarter. This compares to an average realized price of $47.83, which included a $3.73 per barrel loss due to the settlement of our oil derivative contracts in last year’s second quarter.
Our production costs, which include costs for operating and maintaining (O&M expense) our producing wells, expensed workovers, ad valorem taxes and production taxes, were up 65% on a per unit basis when compared to the second quarter last year. Production and ad valorem tax increases were responsible for 53% of the increase. Our per unit production taxes increased 129% or $0.18 per Mcfe due to higher production volumes, higher commodity prices and $540,000 of severance tax refunds that were received during the second quarter 2005. Ad valorem taxes increased 63% or $0.05 per Mcfe due to an increase in property valuations for our oil and natural gas properties because of higher commodity prices. O&M expense increased by 13%, or $0.07 per Mcfe, during the second quarter 2006. The increase in our per unit O&M expense from that in the prior year’s quarter was due to small increases in several different expense categories, with chemical treating accounting for 43% of the per unit increase. Finally, workover expense increased by $0.13 per Mcfe due principally to a reclassification of costs related to workovers performed and reported as workover expense in the first quarter 2005 to capital cost in the second quarter 2005 and to insurance reimbursements in the second quarter 2005.
Our general and administrative expense for the second quarter 2006 was 67% higher when compared to that in the second quarter of last year due primarily to a $1.3 million increase in employee compensation expense and, to a lesser extent, an increase in financial reporting and stock listing expense. Roughly 27% of the increase in employee compensation expense was non-cash expense resulting from our 2006 adoption of FAS 123(R), dealing with a change in accounting methodology for employee stock option expense. Due to these higher costs, general and administrative expense on a per unit basis increased 35% in the quarter to $0.66 per Mcfe.
Our depletion expense for the second quarter 2006 was $11.1 million ($3.38 per Mcfe) compared to $7.2 million ($2.71 per Mcfe) in the second quarter last year. An increase in our depletion rate accounted for 56% of the increase in our second quarter 2006 depletion expense, while the increase in our production volumes accounted for the remaining 44% of the increase. The increase in our depletion rate was primarily a result of an increase in the cost of reserve additions during the first half of 2006.
Our operating income for the second quarter 2006 was $9.1 million and was 14% greater than our operating income in the second quarter 2005.
Our net interest expense for the second quarter 2006 increased by $2.4 million, or 310% from last year. This increase was primarily due to interest incurred on our 9 5/8% senior notes due 2014 (“the Senior Notes”), which we issued in April 2006, and a $1 million write-off of issuance costs associated with the termination of our subordinated credit facility. After deducting the offering discount, fees and expenses, we used the $120.7 million of net proceeds from the issuance of Senior Notes to repay $78.4 million outstanding under our senior and subordinated credit facilities. We subsequently terminated the subordinated credit facility. The remaining proceeds have been temporarily invested in highly liquid, short-term securities and will be used to fund capital expenditures for the balance of 2006. The issuance of the Senior Notes resulted in an increase in our debt outstanding and our weighted average cost of debt. Our weighted average debt outstanding for the second quarter 2006 was $124.9 million compared to $74.9 million last year.
We recorded deferred income tax expense of $3.4 million in the second quarter of this year, compared to deferred income tax expenses of $2.7 million in the second quarter last year. The increase in our deferred income taxes was primarily due to our second quarter adoption of the Texas state margin tax, which was enacted by the state legislature in May 2006 and applies a 1% tax on operating margin beginning in 2007 and payable in 2008. In order to implement the margin tax, we booked $1.3 million of deferred margin tax in the second quarter to account for the cumulative differences between book and tax accounting for periods prior to and including December 31, 2006. Beginning in 2007, due to our ability to deduct intangible drilling costs, we anticipate that the bulk of the associated margin tax should also be deferred.
Our reported net income for the second quarter was $3.7 million ($0.08 per diluted share) compared to net income of $4.8 million ($0.11 per diluted share) in the second quarter last year.
At June 30, 2006, we had $8.0 million in cash, $37.6 million in short-term investments, total assets of $484.2 million and a debt to book capitalization ratio of 34%.
For the quarter ended June 30, 2006, we spent $36.8 million on drilling capital expenditure activities, which represents an increase of 33% over that in the second quarter 2005 and a 19% increase over that in the first quarter 2006. Net cash provided by operating activities funded 75% of our oil and gas capital expenditures during the second quarter 2006 versus 63% for the second quarter last year. Oil and gas capital expenditures for the second quarter 2006 and 2005 were:
|
| Three Months Ended June 30, |
| ||||
|
|
| |||||
|
| 2006 |
| 2005 |
| ||
|
|
|
| ||||
|
| (in thousands) |
| ||||
Drilling |
| $ | 36,810 |
| $ | 27,781 |
|
Net land and G&G |
|
| 4,381 |
|
| 5,432 |
|
Capitalized costs |
|
| 2,724 |
|
| 1,780 |
|
Capitalized FAS 143 ARO |
|
| 253 |
|
| 134 |
|
Total oil and gas capital expenditures |
| $ | 44,168 |
| $ | 35,127 |
|
FIRST SIX MONTHS 2006 RESULTS
Average daily production volumes for the first six months of 2006 were 36.2 MMcfe/d, up 22% when compared to that in the first six months last year. Revenues from the sale of oil and natural gas for the first six months of 2006 were up 48% to $51.9 million when compared to that in the same period last year. Revenue increased by $7.3 million due to increased production volumes and $9.5 million due to increased realized prices.
Our average realized price for natural gas during the first six months of 2006 was $7.22 per Mcf and included a $0.28 per Mcf gain associated with the settlement of our natural gas derivative contracts. This compares to an average realized price of $6.21 per Mcf, which included a $0.06 per Mcf loss due to the settlement of our natural gas derivative contracts in last year’s second quarter. Our average realized price for oil for the first half of 2006 was $64.83 per barrel, which included a $0.22 per barrel loss due to the settlement of our oil derivative contracts. This compares to an average realized price of $45.65, which included a $4.19 per barrel loss due to the settlement of oil derivative contracts in the first six months of last year.
Our production costs for the first six months of 2006 were up 29% on a per unit basis when compared to the same period last year. Production and ad valorem taxes accounted for 69% of the increase in production costs. Our per unit production taxes increased 55% or $0.12 per Mcfe due to higher production volumes, higher commodity prices and $540,000 of severance tax refunds that were received during the first six months of 2005. Ad valorem taxes increased 67% or $0.06 per Mcfe due to an increase in property valuations for our oil and natural gas properties because of higher commodity prices. O&M expense increased 19% or $0.10 per Mcfe. The increase in our per unit O&M expense from that in the prior year’s first six months was due to small increases in several different expense categories, with chemical treating and saltwater disposal accounting for 44% of the per unit increase.
General and administrative expense for the first six months of 2006 was 64% higher than the first six months of last year. G&A expenses increased primarily because of $2.0 million of increased employee compensation expense and, to a lesser extent, because of increased audit, tax and financial reporting costs. Roughly 42% of the increase in employee compensation expense was non-cash expense resulting from our 2006 adoption of FAS 123(R), dealing with a change in accounting methodology for employee stock option expense. These increased costs resulted in our general and administrative expense increasing on a per unit basis by 36% to $0.61 per Mcfe.
Our depletion expense for the first six months of 2006 was $21.4 million ($3.28 per Mcfe) compared to $13.7 million ($2.55 per Mcfe) in the first six months last year. An increase in our depletion rate accounted for 61% of the increase, while increased production volumes accounted for the remaining 39% of the increase. The increase in our depletion rate was primarily a result of an increase in the cost of reserve additions during the first half of 2006.
Our operating income for the first six months of this year was $18.8 million, up 35% when compared to operating income during the first six months of last year.
Our net interest expense for the first six months of 2006 increased by $2.7 million, or 181%, from the comparable period last year. This increase was primarily due to our higher weighted average debt outstanding and higher weighted average interest cost associated with our Senior Notes issuance, and a $1 million write-off of issuance costs associated with the termination of our subordinated credit facility. Our weighted average debt outstanding for the first six months of this year was $103.4 million versus $68.2 million for the comparable period last year.
We recorded deferred income tax expenses of $6.9 million in the first six months of this year, compared to deferred income tax expenses of $4.3 million in the first six month of last year. The increase in our deferred income taxes was primarily due to our higher income before income taxes and aforementioned adoption of the Texas state margin tax.
Our reported net income for the first six months of 2006 was $9.5 million ($0.21 per diluted share) versus net income of $7.9 million ($0.18 per diluted share) for the same period last year.
Year-to-date through June 30, 2006, we spent $67.6 million on drilling capital expenditures and $84.3 million in total oil and gas capital expenditures. For the first six months of 2006, net cash provided by operating activities funded approximately 71% of our oil and gas capital expenditures versus 48% for the first six months of 2005. Oil and gas capital expenditures for the first six months of 2006 and 2005 were:
|
| Six Months Ended June 30, |
| ||||
|
|
| |||||
|
|
| 2006 |
|
| 2005 |
|
|
|
|
| ||||
|
| (in thousands) |
| ||||
Drilling |
| $ | 67,617 |
| $ | 45,238 |
|
Net land and G&G |
|
| 11,554 |
|
| 10,246 |
|
Capitalized costs |
|
| 4,781 |
|
| 3,381 |
|
Capitalized FAS 143 ARO |
|
| 358 |
|
| 160 |
|
Total oil and gas capital expenditures |
| $ | 84,310 |
| $ | 59,025 |
|
THIRD QUARTER AND FULL YEAR 2006 FORECASTS
The following forecasts and estimates of our third quarter 2006 results are forward looking statements subject to the risks and uncertainties identified in the “Forward Looking Statements Disclosure” at the end of this release.
We currently expect our third quarter 2006 production volumes to average between 36 MMcfe/d and 39 MMcfe/d (80% natural gas). For the third quarter 2006, lease operating expenses are projected to be $0.81 per Mcfe based on the mid-point of our production guidance, production taxes are projected to be approximately 5.3% of pre-hedge oil and natural gas revenues, and general and administrative expenses are projected to be $1.9 million ($0.59 to $0.54 per Mcfe).
Based on these production and cost estimates, assumed average NYMEX prices of $6.67 per MMbtu for natural gas and $75.37 per barrel for oil, and taking into account current derivative contracts outstanding, we forecast that our third quarter 2006 revenue will be between $26.5 and $28.5 million and operating income will be between $9.5 and $10.4 million.
In addition, we currently expect to grow production volumes in 2006 by 15% to 25% relative to our 2005 production. This would result in average daily production of between 38.1 and 41.4 MMcfe per day for 2006.
CONFERENCE CALL INFORMATION
Our management will host a conference call to discuss its operational and financial results for the second quarter 2006 with investors, analysts and other interested parties on Tuesday, August 8, 2006, at 10:00 a.m. eastern time. To participate in the call, participants within the U.S. please dial 866-314-5050 and participants outside the U.S. please dial 617-213-8051. The participant passcode for the call is 67054294. A telephone recording of the conference call will be available to interested parties approximately two hours after the call is completed through 12:00 p.m. eastern time on Friday, September 8, 2006. To access the recording, domestic callers dial 888-286- 8010 and international callers dial 617-801-6888. The passcode for the conference call playback is 39437145. In addition, a live and archived web cast of the conference call will be available over the Internet at either http://www.bexp3d.com or http://www.streetevents.com .
A copy of this press release and other financial and statistical information about the periods covered by this press release and by the conference call that will take place on August 8, 2006, will be available on our website. To access the press release: go to http://www.bexp3d.com and click on News Releases. The file with a copy of the press release is named Brigham Exploration Reports Second Quarter 2006 Results and Provides Third Quarter 2006 Forecasts and is dated August 7, 2006. To access the other financial and statistical information that will be covered by the conference call that will take place on August 8, 2006, go to http://www.bexp3d.com and click on Event Calendar. The file with the other financial and statistical information is named Financial and Statistical Information for the Second Quarter 2006 Conference Call and is dated August 8, 2006.
ABOUT BRIGHAM EXPLORATION
Brigham Exploration Company is an independent exploration and production company that applies 3-D seismic imaging and other advanced technologies to systematically explore and develop onshore domestic natural gas and oil provinces. For more information about Brigham Exploration, please visit our website at http://www.bexp3d.com or contact Investor Relations at 512-427- 3444.
FORWARD LOOKING STATEMENTS DISCLOSURE
Except for the historical information contained herein, the matters discussed in this news release are forward looking statements within the meaning of the federal securities laws. Important factors that could cause our actual results to differ materially from those contained in the forward looking statements including our growth strategies, our ability to successfully and economically explore for and develop oil and gas resources, anticipated trends in our business‚ our liquidity and ability to finance our exploration and development activities‚ market conditions in the oil and gas industry‚ our ability to make and integrate acquisitions, the impact of governmental regulation and other risks more fully described in the company’s filings with the Securities and Exchange Commission. Forward-looking are typically identified by use of terms such as “may,” “will,” “expect,” “anticipate,” “estimate” and similar words, although some forward-looking statements may be expressed differently. All forward looking statements contained in this release, including any forecasts and estimates, are based on management’s outlook only as of the date of this release, and we undertake no obligation to update or revise these forward looking statements, whether as a result of subsequent developments or otherwise.
Contact: Rob Roosa, Finance Manager
(512) 427-3300
BRIGHAM EXPLORATION COMPANY
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data) (unaudited)
|
| Three Months Ended |
| Six months Ended |
| ||||||||
|
|
|
| ||||||||||
|
| 2006 |
| 2005 |
| 2006 |
| 2005 |
| ||||
|
|
|
|
|
| ||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and natural gas sales |
| $ | 26,134 |
| $ | 18,434 |
| $ | 51,930 |
| $ | 35,137 |
|
Other revenue |
|
| 52 |
|
| 56 |
|
| 30 |
|
| 99 |
|
|
|
| 26,186 |
|
| 18,490 |
|
| 51,960 |
|
| 35,236 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating |
|
| 2,536 |
|
| 1,390 |
|
| 5,266 |
|
| 3,608 |
|
Production taxes |
|
| 1,052 |
|
| 366 |
|
| 2,196 |
|
| 1,168 |
|
General and administrative |
|
| 2,182 |
|
| 1,304 |
|
| 3,951 |
|
| 2,402 |
|
Depletion of oil and natural gas properties |
|
| 11,106 |
|
| 7,206 |
|
| 21,362 |
|
| 13,659 |
|
Depreciation and amortization |
|
| 121 |
|
| 178 |
|
| 236 |
|
| 360 |
|
Accretion of discount on asset retirement obligations |
|
| 79 |
|
| 43 |
|
| 149 |
|
| 82 |
|
|
|
| 17,076 |
|
| 10,487 |
|
| 33,160 |
|
| 21,279 |
|
Operating income |
|
| 9,110 |
|
| 8,003 |
|
| 18,800 |
|
| 13,957 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
| 448 |
|
| 52 |
|
| 554 |
|
| 91 |
|
Interest expense, net |
|
| (3,141 | ) |
| (766 | ) |
| (4,230 | ) |
| (1,507 | ) |
Other income (expense) |
|
| 622 |
|
| 177 |
|
| 1,301 |
|
| (354 | ) |
|
|
| (2,071 | ) |
| (537 | ) |
| (2,375 | ) |
| (1,770 | ) |
Income before income taxes |
|
| 7,039 |
|
| 7,466 |
|
| 16,425 |
|
| 12,187 |
|
Income tax expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
| — |
|
| — |
|
| — |
|
| — |
|
Deferred |
|
| (3,373 | ) |
| (2,656 | ) |
| (6,884 | ) |
| (4,329 | ) |
|
|
| (3,373 | ) |
| (2,656 | ) |
| (6,884 | ) |
| (4,329 | ) |
Net income |
| $ | 3,666 |
| $ | 4,810 |
| $ | 9,541 |
| $ | 7,858 |
|
Net income per share available to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | 0.08 |
| $ | 0.11 |
| $ | 0.21 |
| $ | 0.19 |
|
Diluted |
| $ | 0.08 |
| $ | 0.11 |
| $ | 0.21 |
| $ | 0.18 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 44,992 |
|
| 42,189 |
|
| 44,989 |
|
| 42,144 |
|
Diluted |
|
| 45,361 |
|
| 43,206 |
|
| 45,501 |
|
| 43,162 |
|
BRIGHAM EXPLORATION COMPANY
PRODUCTION, SALES PRICES AND OTHER FINANCIAL DATA
(unaudited)
|
| Three Months Ended, |
| Six months Ended |
| ||||||||
|
|
|
| ||||||||||
|
| 2006 |
| 2005 |
| 2006 |
| 2005 |
| ||||
|
|
|
|
|
| ||||||||
Average net daily production: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (MMcf) |
|
| 29.2 |
|
| 22.7 |
|
| 28.7 |
|
| 22.4 |
|
Oil (Bbls) |
|
| 1,216 |
|
| 1,145 |
|
| 1,248 |
|
| 1,226 |
|
Equivalent natural gas (MMcfe) (6:1) |
|
| 36.5 |
|
| 29.5 |
|
| 36.2 |
|
| 29.8 |
|
Total net production: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (MMcf) |
|
| 2,629 |
|
| 2,041 |
|
| 5,174 |
|
| 4,035 |
|
Oil (MBbls) |
|
| 109 |
|
| 103 |
|
| 225 |
|
| 221 |
|
Equivalent natural gas (MMcfe) (6:1) |
|
| 3,286 |
|
| 2,659 |
|
| 6,521 |
|
| 5,359 |
|
% Natural gas |
|
| 80 | % |
| 77 | % |
| 79 | % |
| 75 | % |
Sales prices (Before hedging): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas ($/Mcf) |
| $ | 6.56 |
| $ | 6.73 |
| $ | 6.94 |
| $ | 6.27 |
|
Oil ($/Bbl) |
|
| 68.88 |
|
| 51.56 |
|
| 65.05 |
|
| 49.84 |
|
Equivalent natural gas ($/Mcfe) (6:1) |
|
| 7.54 |
|
| 7.16 |
|
| 7.74 |
|
| 6.77 |
|
Realized prices (Post hedging): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas ($/Mcf) (A) |
| $ | 7.07 |
| $ | 6.62 |
| $ | 7.22 |
| $ | 6.21 |
|
Oil ($/Bbl) (A) |
|
| 68.88 |
|
| 47.83 |
|
| 64.83 |
|
| 45.65 |
|
Equivalent natural gas ($/Mcfe) (6:1) (A) |
|
| 7.95 |
|
| 6.93 |
|
| 7.96 |
|
| 6.56 |
|
(A) Includes the effects of hedging gains (losses) of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas ($/Mcf) |
| $ | 0.51 |
| $ | (0.11 | ) | $ | 0.28 |
| $ | (0.06 | ) |
Oil ($/Bbl) |
|
| — |
|
| (3.73 | ) |
| (0.22 | ) |
| (4.19 | ) |
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands)
|
| June 30, |
| December 31, |
| ||
| �� |
|
| ||||
|
| (unaudited) |
|
|
|
| |
Assets: |
|
|
|
|
|
|
|
Current assets |
| $ | 68,180 |
| $ | 28,325 |
|
Oil and natural gas properties, net (full cost method) |
|
| 410,274 |
|
| 347,329 |
|
Other property and equipment, net |
|
| 1,020 |
|
| 1,027 |
|
Other non-current assets |
|
| 4,719 |
|
| 3,746 |
|
Total assets |
| $ | 484,193 |
| $ | 380,427 |
|
Liabilities and stockholders’ equity: |
|
|
|
|
|
|
|
Current liabilities |
| $ | 60,324 |
| $ | 37,467 |
|
Senior notes |
|
| 123,328 |
|
| — |
|
Senior credit facility |
|
| — |
|
| 33,100 |
|
Senior subordinated notes |
|
| — |
|
| 30,000 |
|
Mandatorily redeemable preferred stock, Series A |
|
| 10,101 |
|
| 10,101 |
|
Deferred income tax liability |
|
| 30,275 |
|
| 23,563 |
|
Other non-current liabilities |
|
| 5,016 |
|
| 4,556 |
|
Total liabilities |
| $ | 229,044 |
| $ | 138,787 |
|
Stockholders’ equity |
|
| 255,149 |
|
| 241,640 |
|
Total liabilities and stockholders’ equity |
| $ | 484,193 |
| $ | 380,427 |
|
BRIGHAM EXPLORATION COMPANY
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands) (unaudited)
|
| Three Months Ended, |
| Six months Ended |
| ||||||||
|
|
|
| ||||||||||
|
| 2006 |
| 2005 |
| 2006 |
| 2005 |
| ||||
|
|
|
|
|
| ||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
| $ | 3,666 |
| $ | 4,810 |
| $ | 9,541 |
| $ | 7,858 |
|
Depletion, depreciation and amortization |
|
| 11,227 |
|
| 7,384 |
|
| 21,598 |
|
| 14,019 |
|
Accretion of discount on ARO |
|
| 79 |
|
| 43 |
|
| 149 |
|
| 82 |
|
Interest paid through issuance of additional redeemable preferred stock |
|
| — |
|
| 193 |
|
| — |
|
| 381 |
|
Amortization of deferred loan fees and debt issuance costs |
|
| 1,149 |
|
| 127 |
|
| 1,268 |
|
| 253 |
|
Non-cash stock compensation |
|
| 352 |
|
| — |
|
| 843 |
|
| — |
|
Market value adjustments for derivatives instruments |
|
| 225 |
|
| (140 | ) |
| (490 | ) |
| 466 |
|
Deferred income tax expense |
|
| 3,373 |
|
| 2,656 |
|
| 6,884 |
|
| 4,329 |
|
Other noncash items |
|
| 22 |
|
| 47 |
|
| 64 |
|
| 59 |
|
Changes in operating assets and liabilities |
|
| 13,173 |
|
| 6,837 |
|
| 19,597 |
|
| 754 |
|
Cash flows provided by operating activities |
| $ | 33,266 |
| $ | 21,957 |
| $ | 59,454 |
| $ | 28,201 |
|
Cash flows used by investing activities |
|
| (79,375 | ) |
| (36,169 | ) |
| (112,867 | ) |
| (56,813 | ) |
Cash flows (used) provided by financing activities |
|
| 46,404 |
|
| 15,996 |
|
| 57,486 |
|
| 32,756 |
|
Net increase (decrease) in cash and cash equivalents |
| $ | 295 |
| $ | 1,784 |
| $ | 4,073 |
| $ | 4,144 |
|
SUMMARY PER MCFE DATA
(unaudited)
|
| Three Months Ended |
| Six months Ended |
| ||||||||
|
|
|
| ||||||||||
|
| 2006 |
| 2005 |
| 2006 |
| 2005 |
| ||||
|
|
|
|
|
| ||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and natural gas sales |
| $ | 7.95 |
| $ | 6.93 |
| $ | 7.96 |
| $ | 6.56 |
|
Other revenue |
|
| 0.02 |
|
| 0.02 |
|
| 0.00 |
|
| 0.02 |
|
|
| $ | 7.97 |
| $ | 6.95 |
| $ | 7.96 |
| $ | 6.58 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating |
|
| 0.77 |
|
| 0.52 |
|
| 0.81 |
|
| 0.67 |
|
Production taxes |
|
| 0.32 |
|
| 0.14 |
|
| 0.34 |
|
| 0.22 |
|
General and administrative |
|
| 0.66 |
|
| 0.49 |
|
| 0.61 |
|
| 0.45 |
|
Depletion of natural gas and oil properties |
|
| 3.38 |
|
| 2.71 |
|
| 3.28 |
|
| 2.55 |
|
Depreciation and amortization |
|
| 0.04 |
|
| 0.07 |
|
| 0.04 |
|
| 0.07 |
|
Accretion of discount on ARO |
|
| 0.02 |
|
| 0.02 |
|
| 0.02 |
|
| 0.02 |
|
|
| $ | 5.19 |
| $ | 3.95 |
| $ | 5.10 |
| $ | 3.98 |
|
Operating income |
| $ | 2.78 |
| $ | 3.00 |
| $ | 2.86 |
| $ | 2.60 |
|
Interest expense, net of interest income (A) |
|
| (0.82 | ) |
| (0.27 | ) |
| (0.56 | ) |
| (0.26 | ) |
Other income (expense) (B) |
|
| 0.26 |
|
| 0.01 |
|
| 0.12 |
|
| 0.02 |
|
Adjusted income |
| $ | 2.22 |
| $ | 2.74 |
| $ | 2.42 |
| $ | 2.36 |
|
(A) | Calculated as interest expense minus interest income divided by production for period. |
(B) | Excludes non-cash gains/(losses) arising from hedge accounting for certain of our oil and natural gas hedges. |
BRIGHAM EXPLORATION COMPANY
SUMMARY OF COMMODITY PRICE HEDGES OUTSTANDING AS OF AUGUST 7, 2006
(unaudited)
|
|
|
| Hedge |
| 2006 |
| ||||||
|
|
|
|
| |||||||||
|
|
|
| Q3 |
|
| Q4 |
| |||||
|
|
|
|
|
|
|
| ||||||
Natural Gas Basis Swaps: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Daily volumes |
|
| MMBtu/d |
|
|
|
|
| 9,130 |
|
| 4,565 |
|
Floor (Purchased put) |
|
| $/MMBtu |
|
| Undesignated |
| $ | (0.754 | ) | $ | (0.754 | ) |
Natural Gas Collars: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Daily volumes |
|
| MMBtu/d |
|
|
|
|
| 9,022 |
|
| 10,652 |
|
Floor (Purchased put) |
|
| $/MMBtu |
|
| Cash flow |
| $ | 7.398 |
| $ | 7.745 |
|
Cap (Written call) |
|
| $/MMBtu |
|
| Cash flow |
| $ | 14.938 |
| $ | 19.144 |
|
Natural Gas Three Way Costless Collars: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Daily volumes |
|
| MMBtu/d |
|
|
|
|
| 4,239 |
|
| 1,413 |
|
Floor (Purchased put) |
|
| $/MMBtu |
|
| Cash flow |
| $ | 8.038 |
| $ | 8.038 |
|
Cap (Written call) |
|
| $/MMBtu |
|
| Cash flow |
| $ | 9.586 |
| $ | 9.586 |
|
Written put |
|
| $/MMBtu |
|
| Undesignated |
| $ | 6.654 |
| $ | 6.654 |
|
Oil Collars: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Daily volumes |
|
| Bbls/d |
|
|
|
|
| 321 |
|
| 543 |
|
Floor (Purchased put) |
|
| $/Bbl |
|
| Cash flow |
| $ | 55.76 |
| $ | 57.44 |
|
Cap (Written call) |
|
| $/Bbl |
|
| Cash flow |
| $ | 78.37 |
| $ | 81.81 |
|
Oil Three Way Costless Collars: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Daily volumes |
|
| Bbls/d |
|
|
|
|
| 163 |
|
| — |
|
Floor (Purchased put) |
|
| $/Bbl |
|
| Cash flow |
| $ | 63.00 |
|
| — |
|
Cap (Written call) |
|
| $/Bbl |
|
| Cash flow |
| $ | 75.65 |
|
| — |
|
Written put |
|
| $/Bbl |
|
| Undesignated |
| $ | 48.00 |
|
| — |
|
|
|
| Q1 |
| 2007 |
| Q4 | 2008 |
| ||||||||||
|
|
|
|
| |||||||||||||||
|
|
|
| Q2 |
| Q3 |
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||
Natural Gas Basis Swaps: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Daily volumes |
|
| MMBtu/d |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Floor (Purchased put) |
|
| $/MMBtu |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Natural Gas Collars: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Daily volumes |
|
| MMBtu/d |
|
| 10,833 |
|
| 8,901 |
|
| 8,804 |
|
| 5,326 |
|
| 3,626 |
|
Floor (Purchased put) |
|
| $/MMBtu |
| $ | 8.000 |
| $ | 7.222 |
| $ | 7.222 |
| $ | 7.780 |
| $ | 8.464 |
|
Cap (Written call) |
|
| $/MMBtu |
| $ | 21.721 |
| $ | 12.970 |
| $ | 12.970 |
| $ | 13.555 |
| $ | 14.273 |
|
Daily volumes |
|
| MMBtu/d |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Floor (Purchased put) |
|
| $/MMBtu |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Cap (Written call) |
|
| $/MMBtu |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Written put |
|
| $/MMBtu |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Daily volumes |
|
| Bbls/d |
|
| 456 |
|
| 363 |
|
| 310 |
|
| 223 |
|
| 181 |
|
Floor (Purchased put) |
|
| $/Bbl |
| $ | 55.07 |
| $ | 54.36 |
| $ | 53.37 |
| $ | 57.65 |
| $ | 56.73 |
|
Cap (Written call) |
|
| $/Bbl |
| $ | 82.54 |
| $ | 86.59 |
| $ | 86.18 |
| $ | 90.04 |
| $ | 89.97 |
|
Daily volumes |
|
| Bbls/d |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Floor (Purchased put) |
|
| $/Bbl |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Cap (Written call) |
|
| $/Bbl |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Written put |
|
| $/Bbl |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Note: Hedged volumes and prices reflected in this table represent average contract amounts for the quarterly periods presented; natural gas hedge prices and crude oil hedge contract prices are based on NYMEX pricing.
SOURCE Brigham Exploration Company
-0- 08/07/2006
/CONTACT: Rob Roosa, Finance Manager of Brigham Exploration Company, +1-512-427-3300/
/Web site: http://www.bexp3d.com
http://www.streetevents.com /
(BEXP)